HOUSTON, TX– With the short term treasury still hovering at low levels, this has created an opportunity for credit unions to pursue refinancing of member loans. More and more credit unions are taking the opportunity to capture current member’s auto loans that are financed elsewhere and offer them a lower rate than what they currently have. Credit unions are also looking at capturing non-member refinances by offering their lower rates if they refinance with the credit union. This also gives the credit union a chance to start a new membership relationship with a new refinanced loan.
CUAC’s Member Car Loan is a credit union owned company specializing in auto refinance solutions for credit union clients. They specialize in assisting credit unions with both options in the auto refinance industry: capturing current member auto loans financed elsewhere and capturing non-member auto loans financed elsewhere to become current members with the credit union.
Houston Metropolitan Federal Credit Union (formerly known as Houston Municipal, Employees Federal Credit Union) is a current credit union client of CUAC and recently experienced significant loan growth using CUAC’s Member Car Loan refinance program. Over the last 2 months, Houston Metro utilized the Member Car Loan membership pre-screen program to offer more favorable refinance terms to their members who had financed vehicles with other lenders over the last 2 years.
The credit union saw a significant closing ratio on all members who received the refinance offer. Barbara Stephens, President & CEO of Houston Metro, stated, “This was a huge boost to our loan volume for the first part of 2013. We are very pleased with the results provided by CUAC and will make this a permanent component of our lending strategy.”
CUAC provides a simple, turn-key membership pre-screen program that is very affordable. Janet Askew, Lending Manger of Houston Metro, said, “The process was painless. CUAC handled all the data, came up with marketing material, printed & shipped the offers and handled all of the fulfillment duties. We just sat back and booked the loans. I would highly recommend this program to any credit union that would like to re-capture their members’ loans lost at the dealership.”